AdNews TV: Forget full service, the TV companies have already muscled in...

By AdNews | 5 June 2014

Whatever you think about the full service debate, the fact is that creative agencies will get less and less work as clients ramp up content creation and the TV companies have already muscled in.

In the last 12 months Seven, Nine and Ten have created 1,200 commercials. That is only going to increase.

That means it's no longer about putting the toothpaste back in the tube. Play nice and collaborate? Forget it. Fighting for the spoils between all media disciplines is only going to intensify. That's the view of MEC head strategist James Hier.

“Clients have a content manufacturing problem. They need a lot and they can't afford to pay retail any more – and by retail I mean agencies. They need to pay wholesale. In the last year, 1,200 commercials were produced by Seven Nine and Ten. They also made over three thousand integrated campaigns.”

“Putting the toothpaste back in the tube? It's all over. There is another party here and they are making an enormous amount of content. It is good for their commercial model. It is not going to change.”

As both agencies and media owners are being squeezed, so the fight to stake a claim for a share of the budget will only intensify.

“This is the start of the prickly relationship [media agencies and owners] are going to have with the creative agency and the digital agency, the social agency and the PR agency as we all lay claim to that piece of the bottom line. And that is an additional layer. Why don't we play nicely? Because it is all grey now. There are no boundaries as to who gets to make that piece of content or that piece of the bottom line.”

Watch what Simon Rush, agency founder & principal of Razor Media; Mike Wilson, CEO of Havas Media Australia; Virginia Hyland, founder & principal of Hyland Media; Mike Morrison, managing director of Innocean and Ian Perrin, CEO of ZenithOptimedia had to say about that at the Media Sales Summit.

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